Ramu deposited Rs. 400 per month in a recurring deposit account for 2 years at `9%` per annum. Somu deposited Rs. 400 per month in a recurring deposited account for `2(1)/(2)` years at `12%` per annum. Which of the following can be concluded about the interests to be paid to them on maturities of their deposits ?

Options

A. Ramu must be paid an interest of Rs. 860 less than that of Somu.
B. Ramu must be paid an interest of Rs. 960 less than that of Somu.
C. Ramu must be paid an interest of Rs. 916 less than that of Somu.
D. Ramu must be paid an interest of Rs. 816 less than that of Somu.

Answer

B

Explanation

Time periods of Ramn's account and somu's account are 2 yers, i.e., 24 months and `2(1)/(2)` years, i.e., 30 months and respectively.
Interest to be paid to Ramu (in Rs.)
`=4(300)((3)/(4))=900`
Interest to be paid to Some (in Rs.)
`=(100(30)(31))/(2)((1)/(12))((12)/(100))=1,860`
Interest to be paid to Ramu is less than that to be paid to Somu by Rs. 960.